Newcastle United will allay Kevin Keegan’s concerns about Michael Owen’s future by opening contract negotiations with the England striker this week. The manager expressed his disappointment on Monday night that discussions about extending Owen’s deal, which has only one more season to run, have yet to commence.

Whether Owen will agree to remain at St James’ Park is another matter — although he has spoken enthusiastically regarding recent events on Tyneside — but Keegan will be satisfied that his words have been heeded. Since being named captain in January, Owen’s form has been revelatory.

Chris Mort, the Newcastle chairman, has expressed his desire to retain the 28-year-old, yet the club were reluctant to offer terms until their league status was settled. There is also a general desire to reduce the wage bill, an aspiration that does not sit comfortably with Owen’s £115,000 weekly pay packet, although that is not expected to be a complicating factor.

Keegan conceded yesterday that he has little input in the club’s transfer policy, beyond submitting a list of targets to the Newcastle directors, and it is clear that relationships remain raw. That can hardly be surprising, given that Mike Ashley has owned the club for less than a year, Mort is relatively new to football and those responsible for player acquisitions arrived after Keegan joined.

Keegan’s appointment four months ago was closely followed by those of Dennis Wise, Tony Jimenez and Jeff Vetere, who effectively succeeded the agents and family members who assisted the previous regime in the buying and selling of players and had not been replaced.

As Mort wrote in his programme notes before Newcastle’s 2-0 defeat at home to Chelsea on Monday, as well as “making any immediate fixes that may be required”, the club are intent on investing in young talent. “We will want to acquire players that can help make Newcastle United a top team for the medium and long term, not just for the next season or two,” Mort said. Tottenham Hotspur are the model.

Keegan reiterated that he is not unhappy with a process that restricts his involvement to a minimum, even if during his previous spell at the club he had used his charisma and charm to good effect. Under Keegan’s direction, Alan Shearer was persuaded to reject Manchester United’s advances and he also persuaded Robert Lee that Newcastle was closer to London than Middlesbrough.

Mort, who is untroubled by Keegan’s contention that the so-called “big four” of English football cannot be caught, has stated that the club will “look to strengthen the squad further” during the close season. With Ashley’s own managerial appointment in place, supporters are looking towards the owner with a degree of expectation.

Keegan, though, is unsure of the funding that will be made available. “I don’t know what is here, if I am honest,” he said. “That’s not a problem. You really need to be talking to Chris Mort or Dennis Wise about the finances. My job is to ask Tony Jimenez to go and get players. I give them a player and they go and try and get him for us.” Results have been mixed, with Tottenham signing Jonathan Woodgate ahead of Newcastle in January and Luka Modric more recently.

Keegan has confirmed that Stephen Carr, the experienced defender, Peter Ramage, the defender who came through the ranks, and James Troisi, the Australia midfield player, are to leave.

“We wanted to keep Rammy, but he wants to play regular football and I couldn’t guarantee him that,” Keegan said. “He goes with our best wishes, as does Stephen Carr, who’s been a great pro for this club. He wasn’t offered a contract and I explained why.”